Snowflake Inc. Post‑Quarter Outlook and Market Reaction
Snowflake Inc. (NYSE: SNOW) released its third‑quarter 2025 results on Thursday, 4 December 2025, delivering a revenue of $1.21 billion and an adjusted earnings per share of $0.35. Both figures surpassed the consensus estimates of $1.18 billion and $0.31 respectively, reflecting continued operational efficiency and customer adoption of the company’s cloud data platform.
Despite the earnings beat, the company’s share price slid 8‑9 % in pre‑market and after‑hours trading. The decline was largely attributed to a more cautious fourth‑quarter outlook, in which Snowflake projected product‑revenue growth at a modest $1.195‑$1.20 billion—a figure that fell short of the 30 %+ growth trajectory sought by investors.
Key Financial Highlights
| Metric | Q3 2025 | Analyst Consensus | Commentary |
|---|---|---|---|
| Revenue | $1.21 billion | $1.18 billion | Beat by $0.03 billion |
| Adjusted EPS | $0.35 | $0.31 | Beat by $0.04 |
| Product‑Revenue Forecast (Q4) | $1.195‑$1.20 billion | $1.20‑$1.21 billion | Slightly below expectations |
| Remaining Performance Obligations | $7.88 billion | – | Up 37 % YoY |
The company also reiterated a $7.88 billion in remaining performance obligations, a year‑over‑year increase of 37 %, underscoring the strength of its subscription pipeline.
Analyst Sentiment
- Needham (Mike Cikos): Maintained a Buy rating with a $280.00 price target, emphasizing Snowflake’s strategic positioning in the AI‑driven data cloud market.
- Citizens (Patrick Walravens): Upheld a Market‑Outperform rating and a $325.00 price target, noting the company’s continued growth despite slowing momentum.
- StreetInsider: Highlighted Snowflake’s “impressive story” even as growth decelerates, reinforcing confidence in the long‑term trajectory.
These endorsements suggest that, while the market has reacted defensively to the softer outlook, many analysts still view Snowflake as a resilient play in the enterprise data‑analytics space.
Market Context
- Stock Performance: On 4 December, SNOW traded at $265—well below its 52‑week high of $280.67 (2 November) and above its 52‑week low of $120.10 (6 April). The current price reflects a market recalibration following the fourth‑quarter guidance.
- Valuation: The company’s price‑to‑earnings ratio sits at ‑62.78, a negative figure driven by its continued investment in growth and a historically low share count relative to revenue.
Forward‑Looking Outlook
Snowflake’s Q3 results confirm that its core data‑cloud offerings remain in demand, especially amid the growing need for AI‑enabled analytics. However, the company’s cautious fourth‑quarter forecast indicates that revenue acceleration is likely to moderate as the broader market navigates post‑pandemic normalization.
Investors will be watching closely for:
- Revenue growth trajectory: Whether subsequent quarters can close the gap between actual growth and the 30 %+ targets set by analysts.
- Customer expansion: The pace at which Snowflake expands its enterprise footprint, particularly in high‑growth verticals.
- Cost management: Continued focus on operational efficiency, which has already delivered a solid earnings margin.
- Strategic partnerships: The company’s announced collaborations with Amazon and other cloud providers, which could unlock new revenue streams and customer acquisition channels.
In sum, while Snowflake’s Q3 performance reinforced its operational competence, the market’s reaction underscores a demand for sharper upside in the near term. Analysts remain optimistic, but the stock’s recent decline serves as a reminder that valuation adjustments are likely to persist until the company can demonstrate renewed growth momentum.
